Business in Brief: Mobileye Shares Take Hit in Public Spat With Tesla

Ceva rallies after market learns its processors are inside the new iPhone | TipRanks in collaborative pact with Nasdaq | TASE shares lose momentum after early advance.

Reuters

Mobileye shares take hit in public spat with Tesla

If share price is any measure, Mobileye is the loser in the caustic debate it has fought with the electric-vehicle maker Tesla about why the two ended collaboration two months ago. Since the Israeli maker of collision-prevention technology sparked the controversy on Wednesday, Mobileye’s share price has fallen 2.8% and was trading early Monday New York time at $42.98.

Tesla, meanwhile, has risen 5.6% to $207.12. In a Reuters interview, Mobileye chairman Amnon Shashua contended that Tesla was “pushing the envelope in terms of safety” with its AutoPilot driver-assist system based on Mobileye technology. Tesla fired back that it dropped Mobileye in a commercial dispute.

The Los Angeles Times quoted Bill Selesky, research analyst at Argus Research, as saying Shashua’s comments raised questions as to “whether this technology is ready for the public” right now. “Just the fact he came out with something, I think would be a negative for the company and ultimately the stock,” he said. (TheMarker Staff)

Ceva rallies after market learns its processors are inside the new iPhone

Shares of Israel’s Ceva took off Monday on news that its digital signal processors are being used inside Apple’s new iPhone 7 and iPhone 7+.

The reason is that Apple revealed that Intel is now supplying many of the modems for the new device and Ceva is an Intel subcontractor, entitling it to royalties from iPhone sales. The financial website Motley Fool estimated that if Apple ships in the upcoming product cycle120 million to 130 million units, Ceva CEVA could see $5.3 million in royalty revenue, a major addition to its sales last year of $59.5 million. “We view CEVA as one of the main beneficiaries from the launch of the iPhone 7/7+,” said Gary Mobley, an analyst at Benchmark Company over the weekend.

Barron’s magazine added, “For investors, aside from buying Apple shares, one of the ways to make money off the trend may be to invest in Ceva.” Ceva shares were up 9.4% at $34.71 midday local time in New York. (TheMarker Staff)

TipRanks in collaborative pact with Nasdaq

Israel’s TipRanks has launched a cooperative program this week with the Nasdaq Stock Market for its service ranking analysts and financial bloggers based on their stock picks’ performance. A link to the TopRanks’ system appears on the Nasdaq website as of Sunday, offering investors analysis of their portfolio, tips on how to diversify it, risk analysis and analysts’ opinions and performance comparison with other portfolios.

“This is an important collaboration, which will expose us to millions of new users and let Nasdaq monetize users,” said CEO and co-founder Uri Gruenbaum. He declined to provide details about the revenue-sharing agreement the two sides have.

 TipRanks counts about 4,000 premium users who pay a fee for access to more data and analytical tools and has revenues in the single millions of dollars. “Our system enables us to look at all the stock traded in the American market and give each one a rating,” he said. (Shelly Appelberg)

TASE shares lose momentum after early advance

Tel Aviv shares drifted lower from early highs Monday even as markets in Europe and Wall Street moved higher. The blue chip TA-25 index ended virtually unchanged at 1,448.67 points, while the TA-100 gained 0.2% to 1,270.31, as just over 1 billion shekels ($270 million) in shares changed hands. Insurance stocks led gainers, with Migdal ahead 2.5% by closing at 2.44 shekels and IBI Insurance up 1.7% to 175.50. Mazor Robotics led TA-100 gainers, advancing 3.6% to 43.90 while Kenon added 2.8% to a 7.3% jump the day before to end at 40.17.

Blue Square Real Estate rose 3.7% to 154.80 after it lowered the interest it pays on bonds following a ratings upgrade by Midroog. It was the biggest gainer among TA-100 shares for the day. Partner Communications led TA-100 losers, falling 2.2% to 2.44. The Israel Corporation lost 1.1% to close at 653 shekels. Jerusalem Economic Corporation ended down 0.2% to 8.87. Shareholders rejected an offer from the Saidoff brothers to buy 30% of the company at 7.25 a share. (Uri Tomer)